Stock of the day: Ford

Stock of the day: Ford
Ford Motor Company's recent chart dynamics suggest a shift in momentum, casting a shadow over the bullish run it experienced since the beginning of June. At that time, the company's stock showed a promising trajectory, breaking free from the confines of a symmetric triangle pattern, highlighted by black lines. This surge in price saw a peak at the end of June when it managed to cross a significant horizontal resistance at $14.6, represented with an orange marker. This movement was perceived as a strong buy signal for many investors.
However, what followed was an unexpected turn of events. Rather than continuing its ascent to register new significant highs, the stock chart showed the formation of a double top pattern, denoted by the yellow color. This reversal pattern, typically indicating a change in trend, became even more pronounced at the start of the current week. The stock opened with a bearish gap, with its price positioning below the previously broken orange resistance area.

This movement not only activated the bearish implications of the double top formation but also marked the previous breakout as false. Such false breakouts often act as reliable indicators of a move in the opposite direction. In Ford's case, this suggests potential downward pressure.

As things stand, the outlook for Ford appears bearish as long as the stock remains under the orange resistance. Looking ahead, the immediate target for this bearish move might be the upper boundary of the previously mentioned symmetric triangle. If the bearish momentum persists, we might even see the price reaching down towards the green horizontal support in the longer run.
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